Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?

Resource Information

The work Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate? represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?

Creator

• Linn, A
• Thömmes, O

Subject

• exit tax
• ECJ case law
• interest
• fundamental freedoms
• deferment of tax

Language

eng

Summary

The European Court of Justice (ECJ) ruled in the National Grid Indus case that a company migrating to another EU Member State must be given the choice of either making an immediate payment of exit tax or obtaining the deferment of the payment of tax if the company is willing to bear the administrative burden of tracing the assets that have been relocated abroad. However, two statements of the Court relating to a Member State's ability to charge interest and to require a bank guarantee have caused some confusion. As demonstrated in this article, charging interest on deferred exit taxes is not proportionate and violates the freedom of establishment principle. Member States can require a security only where there is a palpable risk that the deferred tax is non-recoverable

Citation source

In: Intertax. - Alphen aan den Rijn. - Vol. 40 (2012),

Geographic coverage

European Union

Language note

English